ED Attaches Properties Worth ₹51.28 Crore in Deepak Cable Bank Fraud Money Laundering Case
Bengaluru: The Enforcement Directorate (ED), Bengaluru Zonal Office, has provisionally attached immovable properties worth approximately ₹51.28 crore (with an estimated market value of over ₹150 crore) under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, in connection with an alleged bank fraud and loan diversion case involving M/s Deepak Cable (India) Ltd. (DCIL) and its promoters.
According to the ED, the case pertains to alleged diversion and siphoning of loan funds by Deepak Cable (India) Ltd., its Managing Director K. Venkateshwara Rao, Director Smt. Satyavathy Ball, and associated entities.
The money laundering investigation was initiated on the basis of an FIR registered by the Central Bureau of Investigation (CBI), BS&FB, Bengaluru. The scheduled offences include allegations of criminal conspiracy, cheating, forgery, use of forged documents and criminal misconduct resulting in wrongful losses to a consortium of banks.
The ED said its investigation revealed that DCIL and its promoters allegedly obtained credit facilities from consortium banks by submitting manipulated financial statements, inflated stock statements and false debtor statements.
The agency further alleged that the accused diverted and siphoned off bank loan funds through a network of related companies, including Surya Transmission Ltd., Adhunik Power Transmission Ltd., Dandeli Ferro Pvt. Ltd., Sharavathy Conductors Pvt. Ltd., Venkatesh Industries, Maruthi Engineering Works, Universal Transmission Line Products, KGN Electricals and other connected entities, by creating fictitious sale and purchase transactions without actual movement of goods.
According to the ED, portions of the loan proceeds were also diverted for purposes unrelated to the sanctioned objectives of the loans, including the buy-back of equity shares from private equity investors through related entities and acquisition of assets.
Earlier, the ED conducted searches under Section 17 of the PMLA at multiple premises linked to the accused and their associates, during which incriminating documents, digital devices and records were seized. Subsequently, K. Venkateshwara Rao was arrested under Section 19 of the PMLA on June 2, 2026, and was remanded to ED custody.
The investigation further identified properties directly acquired from the alleged proceeds of crime as well as equivalent-value properties held in the names of the accused, their family members and connected entities. As a substantial portion of the alleged proceeds had been layered, diverted or could not be directly traced, the ED said equivalent-value properties were also provisionally attached to safeguard the proceeds of crime and prevent frustration of confiscation proceedings.
Further investigation is underway.
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